Buying interest from the main traditional basic pig iron (BPI) customers in the spot market has remained frozen this week. Meanwhile, suppliers have been not in a hurry to entice customers with discounts.
In particular, global suppliers have continued to withdraw their offers, preferring to evaluate the ongoing developments in the steel industry and in the scrap segment, in particular. Besides that, the beginning of the rainy season has made Brazilian BPI suppliers focus on production issues. “Current weather conditions are terrible for pig iron production,” the main Brazil-based BPI seller stated. In the latest deal, a cargo for ex-Brazil BPI has changed hands at $500/mt FOB, with Peru the expected destination, as SteelOrbis reported previously. “The market remains subdued these days. There is very little activity, if there is any,” the European trader commented with regard to the current situation.
A deal for 25,000 mt of ex-India BPI cargo has been done to a South Korean steelmaker at $495/mt FOB, which translates to $535/mt CFR taking into account freight costs. “That definitely will push the market,” an international BPI distributor stated.
Following the abovementioned deal, market insiders have rejected its BPI price idea for the US market, with still no buying interest being seen there. Specifically, most market players have started to voice $540-545/mt CFR as the highest levels possible to be achieved in the coming bookings to the US market. In that case, the FOB Black Sea price would be $490-495/mt FOB, down $40-45/mt compared to the previous ex-CIS bookings done to Europe and Turkey.